It depends on the loan type, but most buyers can qualify for a mortgage with a score of 620 or higher. FHA loans go lower, down to 580 in most cases. And while you can technically get approved with less than perfect credit, your score has a direct impact on your interest rate — which affects how much you pay every single month for the life of the loan.

What Are the Minimums by Loan Type?

Different loan programs have different floors, and the lender you work with may set their own requirements on top of the program minimums.

For a conventional loan, 620 has long been the standard floor, and most individual lenders still use it as their minimum. It is worth knowing that as of late 2025, Fannie Mae's automated underwriting system no longer requires a strict minimum credit score -- instead evaluating the full financial profile of the borrower. In practice, most lenders still overlay a 620 or 640 minimum, so the threshold has not disappeared, but it does mean more flexibility exists than in prior years for buyers with strong overall finances. This is the most common loan type for buyers who are not first-time purchasers or who do not qualify for a government-backed program.

For an FHA loan, the minimum is 580 with a 3.5 percent down payment. If your score falls between 500 and 579, you can still qualify with FHA, but you will need to put 10 percent down instead. FHA loans are popular with first-time buyers because the down payment requirements are lower and the credit standards are more flexible.

For a VA loan, there is no official minimum credit score set by the Department of Veterans Affairs. However, most lenders who issue VA loans require a score of at least 580 to 620. If you or your spouse have military service and qualify for a VA loan, it is worth talking to a VA-experienced lender about what their specific threshold is.

For a USDA loan, which covers certain rural and suburban areas, most lenders require a score of at least 640. USDA loans offer no down payment options for eligible properties and borrowers.

For a jumbo loan, which covers amounts above the conventional conforming limits, lenders typically require a minimum of 680, with most preferring 700 to 720 or above. The best jumbo rates tend to start at 740.

What Score Gets You the Best Rate?

Qualifying and getting the best rate are two very different things. Lenders use your credit score as one of the primary factors in setting your interest rate, and the difference between a 640 and a 760 can be meaningful over the life of a loan.

Most lenders price their best rates starting at a score of 740 to 760. Below that threshold, rates tend to rise in tiers, with each 20-point drop adding a bit more to what you will pay. On a $500,000 loan, the difference between a 680 score and a 760 score might be anywhere from a quarter to half a point in rate, which translates to hundreds of dollars per year in interest.

This does not mean you should wait until your score hits 760 to buy. But if your score is in the mid-600s and you have six months before you need to move, a targeted effort to improve your score can be worth real money.

What Can Lower Your Score Before Closing?

One thing many buyers do not realize is that credit scores can shift between pre-approval and closing, and any change can affect the rate you were quoted or, in some cases, the loan you were approved for.

Opening new credit accounts, making large purchases on existing cards, co-signing a loan, or even having someone run a hard inquiry on your credit can all move your score. Lenders often pull credit again shortly before closing. The safest approach is to keep your credit activity flat from the moment you start the mortgage process until after you have the keys.

Paying down existing balances before you apply can improve your score meaningfully. Credit utilization, which is how much of your available credit you are using, is one of the faster-moving factors in your score. Getting your utilization below 30 percent on each card tends to help.

Does It Matter Which Credit Score a Lender Uses?

Lenders typically pull your credit from all three bureaus -- Equifax, Experian, and TransUnion -- and use the middle score for qualifying purposes. If you are buying with a co-borrower, the lender uses the lower of the two middle scores.

This matters because your score can vary by bureau. One bureau might show a 710, another a 695, and a third a 720. The lender would use 710 in that scenario. Knowing where all three of your scores land before you apply helps you understand which tier you are in and whether there is anything worth addressing before the process begins.

What Should You Do If Your Score Is Not Where You Need It?

A few months of focused effort can move a credit score more than most people expect. The highest-impact actions are paying down revolving balances, disputing any errors on your report, and making sure you have no missed or late payments going forward.

What generally does not help in the short term is closing old accounts. Length of credit history is a factor in your score, and removing accounts can sometimes lower your score even if the accounts are inactive. If you are trying to improve your score quickly, talk to your lender before making any changes. Some lenders offer a rapid rescore service that can update your score in a few business days after you pay down a balance.

If your score needs significant work, a realistic timeline is three to six months of consistent behavior. Buyers who plan ahead and treat their credit as part of the purchase preparation process tend to come to the table in a much stronger position.

FAQs

Can I buy a house with a 580 credit score?
Yes, with an FHA loan, a 580 score qualifies you for the standard 3.5 percent down payment program. Some conventional lenders will also work with scores in that range, but your options will be more limited and your rate will be higher than it would be with a stronger score. Getting pre-approved with a lender is the best way to understand exactly what you qualify for at your current score.

Does checking my own credit hurt my score?
No. When you check your own credit, it is considered a soft inquiry and does not affect your score. Hard inquiries -- the kind lenders run when you apply for credit -- do have a small impact, typically a few points, and that impact fades over time. If you are shopping multiple lenders within a short window, credit scoring models usually treat those as a single inquiry rather than multiple ones, so there is no penalty for rate shopping.

How fast can I improve my credit score?
It depends on what is dragging it down. If high utilization is the main issue, paying down balances can improve your score within a billing cycle or two. If the problem is missed payments or collections, the improvement takes longer since those marks stay on your report for seven years, though their impact decreases over time. An experienced loan officer can help you identify the specific factors holding your score back and prioritize what to address first.

Is there a difference between my credit score and the score a lender sees?
Yes, and it can be significant. The scores you see through consumer sites like Credit Karma are often VantageScore models, while mortgage lenders typically use older versions of the FICO score. The number may be different, sometimes by 20 to 40 points in either direction. For the most accurate picture of where you stand for mortgage purposes, ask a lender to run a full tri-merge credit report.

Should I pay off all my debt before applying for a mortgage?
Not necessarily. Paying down high-balance credit cards is usually worth doing because it improves your utilization ratio. But wiping out installment loans like a car payment may not move your score significantly and could reduce the cash you have available for a down payment and closing costs. The right balance depends on your specific situation. A lender or housing counselor can help you decide where your money does the most good before you apply.